Paraguay's central bank announced on November 3 that it had started resolution proceedings for Ueno Bank. The regulator said the lender's solvency ratio had fallen below half the required minimum after adjustments to its financial statements.
The central bank said its deposit guarantee covers up to 228.3 million guaranĂes per depositor at each institution. On November 5, it announced an initial payment stage for customers with deposits of up to 10 million guaranĂes who had no outstanding debt to Ueno Bank and held an account elsewhere.
The regulator described Ueno's problems as specific to that bank, rather than the wider financial system. It also said it would release instructions for other depositor groups through official channels.
Customers with frozen balances cannot use those deposits to buy USDT until they regain access. Neither the transaction records nor the regulator's statements establish a connection between the Paraguay banking crisis and the transfers involving Tether Treasury and Bitfinex.
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